Yellow Pages publisher Yell Group (LON:YELL) said performance for the year to end-March was ahead of guidance, with customer retention and revenue declines stabilising. However, shares in the company fell 21% to 36.8% on news that chief executive John Condron and finance director John Davis are set to leave the group in May.
In the full-year, revenue was down 11.5% to £2.122bn; down 13.8% at constant exchange rates. Online revenue was £415.1m; up 13.3% at constant exchange rates to 19.6% of total revenue (14.9% prior year). Adjusted EBITDA was down 24.1% to £619.6m; down 25.7% at constant exchange rates. Operating cash flow was down 0.8% to £724.1m; down 4.2% at constant exchange rates. Cash conversion was 116.9% (2009 - 89.5%). Free cash flow before payments of exceptionals was £397.5m (2009 - £395.2m). Adjusted diluted earnings per share were down 66.1% to 11.7p.
John Condron said: "For the fourth quarter, Yell delivered results ahead of guidance, despite increasing our investment in products and services and, for the full year, we beat expectations. The financial and economic impacts over the past two and more years have been unprecedented for our customers and, therefore, for ourselves. The actions we have taken have brought Yell through this period, creating efficiencies, maintaining investment, supporting our customers, stabilising print retention, growing our internet businesses and, at the least, maintaining our strong market position in all our geographies.
"Economic recovery, and therefore the recovery of our customers' confidence, has yet to become fully established. However, we continue to experience noticeable improvement in the rate of decline. This and the strength of our business reinforce our confidence in Yell's ability to benefit strongly when the economic recovery and our customers' confidence do become more fully established."
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